Last week, the market experienced plenty of volatility as traders digested breaking news about the coronavirus and impact on the Chinese economy. This week experienced similar volatility despite being a shortened trading session due to the Presidents’ Day holiday. China once again was the main mover of the markets.
This week, however, it wasn’t all about the coronavirus. Beijing continued to pledge new stimulus measures in order to lessen the downside of viral outbreak and keep the world’s second-largest economy cooking. This helped boost traders’ optimism about the virus and limit its negative impact on the markets. However, there were several instances throughout the week that reminded traders that the virus needed to be taken seriously. This helped to create several down days and higher volatility for the major averages.
Elsewhere, the shortened week brought plenty of economic data as well as several major earnings reports. On both fronts, data and quarterly results were mixed. This added to the confusion and lack of direction for the week.
In the end, news from China – good and bad – moved the markets and created a very choppy environment for traders.
Be sure to check out our previous Wrap here, when the coronavirus fears ramped up.
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